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| Just because you can, doesn't mean you should |
I'd be very careful and get some quality accounting and legal advice first. There are also some other considerations. In addition to that, are you experienced in owning and managing rental properties? A few items to be concerned about right now. There has been an eviction moratorium that is about to expire soon. A few states may extend it. That means if you have a property with a mortgage, you will continue to make the payments and could be getting no income. Financing a property for rental is also different that a home mortgage for your personal residence. Once the moratorium goes away, who knows what will happen. I doubt all those people that haven't been paying will be able to come up with thousands of back rent payments. Will there suddenly be lots of vacancies and a sell off in properties? Right now you would be buying into that market at a tremendous premium over historic prices. ___________________________ Avoid buying ChiCom/CCP products whenever possible. | |||
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Member |
First as others have said get competent tax advise. If you can roll over your funds into a self directed IRA it is possible to buy investment property with the help of a third party custodian (there are firms that specialize in this) Here is an overview: https://www.investopedia.com/a...estment-property.asp ------------------ Eddie Our Founding Fathers were men who understood that the right thing is not necessarily the written thing. -kkina | |||
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| Team Apathy |
Well, this is at least six years in the future, not an immediate project. That being said, depending on what happens to the housing market in the next year after the moratorium expires... it might turn out to be a good time to invest in some property. | |||
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Member |
I have a 457 account and the money is accessible as soon as I end my employment, regardless of the age. Obviously yours could be different but I can draw mine and use it for whatever when I leave my job. I’ll have to pay income tax on whatever I pull out though. | |||
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| Team Apathy |
Same here. No age penalty, just subject to income tax. I was just looking for a way to invest the 457 directly to try and avoid the income tax, but I think taking a smaller annual dispersement and leaving most of the fund intact to grow is a better long term strategy… I know past performance isn’t indicative of future growth, but over the 15 years I’ve had the account it is in double digit growth rates. | |||
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| Member |
This can turn into a compliance nightmare fast. If you buy it with funds from your IRA, all the rents need to go back to the IRA. If you have no funds in your IRA and you have to put a 20k roof on it is it a disallowed IRA contribution? What about the vested ownership ? Your IRA administrator will need to be involved. You likely can not get traditional financing so will need to be all cash purchase. This is not amateur hour rolling over to schwab or fidelity and trading some mutual funds. You need a IRA company that really knows what they are doing to guide you and hold your hand and there are several legit ones out there. One misstep could end up being an obscenely expensive tax liability | |||
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